US and Canadian Services Growth Both Cooled in Latest Readings

Canada's services purchasing managers' index hit a six-month low as trade tensions between the two countries intensified, according to data released this week. In the United States, the services sector also showed slower growth, with the PMI reading falling short of economists' forecasts. The two readings point in the same direction: momentum in North American services activity, the largest share of both economies, is fading. Services PMI gauges measure sentiment among purchasing managers and are watched closely as an early signal of broader economic direction because they move faster than hard data like GDP. What is unresolved is whether this is a temporary dip tied to trade friction or the start of a more sustained slowdown. The next month's PMI releases from both countries will show whether the trend continues or reverses.